[Federal Register Volume 61, Number 78 (Monday, April 22, 1996)]
[Proposed Rules]
[Pages 17588-17589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9831]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 1106

[DA-96-05]


Milk in the Southwest Plains Marketing Area; Proposed Suspension 
of Certain Provisions of the Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed suspension of rule.

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SUMMARY: This document invites written comments on a proposal to 
suspend certain provisions of the Southwest Plains Federal milk 
marketing order (Order 106) for the period of September 1996 through 
August 1998. The proposal would suspend a portion of the supply plant 
shipping requirement and the touch-base requirement under Order 106 for 
a 2-year period. The action was requested by Kraft Foods, Inc. (Kraft), 
which contends the suspension is necessary to prevent the uneconomical 
and inefficient movement of milk and to ensure that producers 
historically associated with the market will continue to have their 
milk pooled under Order 106.

DATES: Comments are due no later than May 22, 1996.

ADDRESSES: Comments (two copies) should be filed with the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090-6456.

FOR FURTHER INFORMATION CONTACT: Nicholas Memoli, Marketing Specialist, 
USDA/AMS/Dairy Division, Order Formulation Branch, Room 2971, South 
Building, P.O. Box 96456, Washington, DC 20090- 6456, (202) 690-1932.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act (5 U.S.C. 
601-612) requires the Agency to examine the impact of a proposed rule 
on small entities. Pursuant to 5 U.S.C. 605(b), the Administrator of 
the Agricultural Marketing Service has certified that this proposed 
rule would not have a significant economic impact on a substantial 
number of small

[[Page 17589]]

entities. Such rule would lessen the regulatory impact of the order on 
certain milk handlers and would tend to ensure that dairy farmers would 
continue to have their milk priced under the order and thereby receive 
the benefits that accrue from such pricing.
    The Department is issuing this proposed rule in conformance with 
Executive Order 12866.
    This proposed rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect. If adopted, this proposed rule will not preempt any state or 
local laws, regulations, or policies, unless they present an 
irreconcilable conflict with the rule.
    The Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), provides that administrative proceedings must be 
exhausted before parties may file suit in court. Under section 
608c(15)(A) of the Act, any handler subject to an order may file with 
the Secretary a petition stating that the order, any provisions of the 
order, or any obligation imposed in connection with the order is not in 
accordance with law and request a modification of the order or to be 
exempted from the order. A handler is afforded the opportunity for a 
hearing on the petition. After a hearing, the Secretary would rule on 
the petition. The Act provides that the district court of the United 
States in any district in which the handler is an inhabitant, or has 
its principal place of business, has jurisdiction in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Notice is hereby given that, pursuant to the provisions of the 
Agricultural Marketing Agreement Act, the suspension of the following 
provisions of the order regulating the handling of milk in the 
Southwest Plains marketing area is being considered for the period of 
September 1, 1996, through August 31, 1998:
    In Sec. 1106.6, the words ``during the month''.
    In Sec. 1106.7(b)(1), beginning with the words ``of February 
through August'' and continuing to the end of the paragraph.
    In Sec. 1106.13, paragraph (d)(1) in its entirety.
    All persons who wish to send written data, views or arguments about 
the proposed suspension should send two copies of them to the USDA/AMS/
Dairy Division, Order Formulation Branch, Room 2971, South Building, 
P.O. Box 96456, Washington, DC 20090- 6456, by the 30th day after 
publication of this notice in the Federal Register.
    All written submissions made pursuant to this notice will be made 
available for public inspection in the Dairy Division during regular 
business hours (7 CFR 1.27(b)).

Statement of Consideration

    The proposed rule would suspend the requirement that producers 
``touch-base'' at a pool plant with at least one day's production 
during the month before their milk is eligible for diversion to a 
nonpool plant. By suspending the touch-base provision, producer milk 
would not be required to be delivered to pool plants before going to 
unregulated manufacturing plants.
    The proposed suspension would also allow a supply plant that has 
been associated with the Southwest Plains order during the months of 
September 1995 through January 1996 to qualify as a pool plant without 
shipping any milk to a pool distributing plant during the months of 
September 1996 through August 1998. Without the suspension, a supply 
plant would be required to ship 50 percent of its producer receipts to 
pool distributing plants during the months of September through January 
and 20 percent of its producer receipts to pool distributing plants 
during the months of February through August to qualify as a pool plant 
under the order.
    According to Kraft's letter requesting the suspension, supplemental 
milk supplies will not be needed to meet the fluid needs of 
distributing plants. Kraft anticipates that there will be an adequate 
supply of direct-ship producer milk located in the general area of 
distributing plants available to meet the Class I needs of the market. 
Consequently, it states, there is no need to require producers located 
some distance from pool distributing plants to touch-base when their 
milk can more economically be diverted directly to manufacturing plants 
in the production area.
    Accordingly, it may be appropriate to suspend the aforesaid 
provisions from September 1, 1996, through August 31, 1998.

List of Subjects in 7 CFR Part 1106

    Milk marketing orders.

    The authority citation for 7 CFR Part 1106 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    Dated: April 9, 1996.
Lon Hatamiya,
Administrator.
[FR Doc. 96-9831 Filed 4-19-96; 8:45 am]
BILLING CODE 3410-02-P